Cost reduction in major LNG facilities

Conference · Fri Jan 01 04:00:00 EST 1988

OSTI ID:6466278

Durr, C A; Dela Vega, F F

Capital cost reduction should not be an objective all by itself; rather, capital cost reduction must be balanced with other objectives such as safety, reliability and operating/maintenance cost. Thus, capital costs should be optimized consistent with the overall objective for the project. There are many project specific, technology and execution factors that determine the capital cost for an LNG project. Thus, in order to significantly reduce capital cost ana analysis must be made to determine ''where the money is spent''; then a concerted effort is made to reduce costs in all areas of plant design. For example, improvements in process, utility, offsite and equipment design will yield cost reductions that can be significant. Likewise, continued efforts in engineering execution such as modular engineering and 3D plant design result in added savings. In order to be successful, all of these cost reduction concepts require excellent project management with emphasis on up front planning and with effective execution. In this manner, the overall objective of a safe, reliable and cost effective plant can be achieved.

• OSTI ID: 6466278
• Report Number(s): CONF-880603-
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
CAPITALIZED COST
COST
COST BENEFIT ANALYSIS
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LIQUEFIED GASES
LIQUEFIED NATURAL GAS
LNG PLANTS
NATURAL GAS
OPERATING COST
OPERATION
PLANNING
RELIABILITY
SAFETY